Selling books to company

**Sockpuppet** · 30 May 2007, 19:07

If you sell something not sure if its classed as income and taxed?

Seems a bit dodgy. Selling an asset to the company that you had anyway. You'd probably have to pay BIK on them if they are placed at your disposal.

**swamp** · 30 May 2007, 20:43

I sold my collection of books to my Ltd. I used the Amazon 'Used and New' price. Some prices were quite generous

but it's a fair way of doing it, and I think the taxman would have to accept it too.

**TheFaQQer** · 31 May 2007, 07:35

If this is a new company, you should just include it as setup costs that you had prior to startup - no need for a receipt (although one always helps), but a realistic valuation should be fine.

When I started MyCo, I had all sorts of things like that, and office furniture, laptop etc. etc. that I just lumped in together as pre-formation expenses and claimed them.

**nucastle** · 31 May 2007, 07:40

So books, existing pc ..... laptops. All used for business purposes. All pukka?

Would like to get as much out of my Ltd as possible before i start paying the taxman - but obviously only if its allowable.

**angusglover** · 31 May 2007, 07:44

Do you then have to provide a receipt etc for proof? How is it recorded?

**TheFaQQer** · 31 May 2007, 10:54

Mine is just recorded in a spreadsheet, with a justification for the valuation, and some receipts that I had (e.g. for the computer).

My office furniture I have no receipts for, since I bought it 6 months before the company was set up. I've just documented that there was no receipt for it, but put in an approximate value and claimed it back.

Discuss it with an accountant - this is what my accountant said to do, so I claimed it back. As long as there is a reasonable justification, you stand a better chance in the event of an investigation. I claimed laptop, furniture, existing stock (I manufacture as well as providing consultancy) that I'd got in before setting up the company.

Selling books to company